And these figures do not include the additional litigation expenses and grief that the parties bear when going all the way to a jury verdict.
This information comes from the article, “Let’s Not Make A Deal: An Empirical Study of Decision Making in Unsuccessful Settlement Negotiations” (Journal of Empirical Legal Studies, Vol. 5, Issue 3, September 2008).
Its lead author, Randall L. Kiser, has also written a book “Beyond Right and Wrong: The Power of Effective Decision Making for Attorneys and Clients.”
The book is a guide through the decision making process, for better or worse, of lawyers and their clients. It analyzes over 11,000 attorney-client decisions in real cases, and summarizes decades of research about the decisions made by judges, juries, litigants and counsel.
The author does more than expose us to the less than hoped for results of the litigation process. He helps explain how good legal decision making is impeded by psychological, social and institutional factors. And to help us all become better at what we do, the author supplies ideas to improve our decision making.
It should come as no surprise that the research surveyed in the book suggests that the best possible outcome for clients is generally settle- ment rather than trial.
I thought you might enjoy learning about this fascinating study and the book written by the same author.